- US Senate pushes loan limit hike to $480 billion
- US weekly jobless claims drop sharply
- All 11 S&P 500 Sectors Gained Advances
- Levi Strauss shares rise after profit-booking
- Index Jumps: Dow 1.45%, S&P 1.38%, Nasdaq 1.66%
Oct 7 (Businesshala) – Wall Street’s main indexes jumped on Thursday in a broad-based rally led by heavyweight technology stocks, after a debt-limit deadlock in the US Congress eased concerns of a possible government debt default this month.
The US Senate took a step toward passing a $480 billion increase in the Treasury Department’s lending authorization that would prevent another partisan showing by December.
Uncertainty over debt-ceiling talks was a concern investors cited in September as the S&P 500 reported its biggest monthly percentage drop since the start of the coronavirus pandemic in March 2020.
“Today’s (market) is driven by a modest move in Washington toward rationality about being able to pay your bills, write some checks,” said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh.
Meanwhile, data showed last week the number of Americans filing new claims for jobless benefits fell by the steepest in three months, suggesting a recovery in the labor market was gaining momentum as COVID-19 slowed down. The latest wave of -19 infections was beginning to subside.
The closely watched monthly US jobs report is due out on Friday.
Brad Neumann, Algeria’s director of market strategy, said: “Today’s numbers reinforce the expectation that there will be a significant move in employment in the coming months, and I think it’s positive for the economy.”
“Markets climbed a wall of worry today as fears of a credit-limit deadlock eased and hopes of a pick-up in job gains strengthened.”
The Dow Jones Industrial Average (.DJI) added 499.26 points, or 1.45%, to 34,916.25, the S&P 500 (.SPX) added 60.1 points, or 1.38%, to 4,423.65 and the Nasdaq Composite (.IXIC) added 241.05 points, or 1.66%, to 14,742.96.
All 11 S&P 500 sectors remained higher. Content (.SPLRCM) led the way, climbing 2.1%, while consumer discretionary (.SPLRCD) and healthcare (.SPXHC) were also among the top performers.
Mega-cap stocks, including Apple Inc (AAPL.O), Amazon.com Inc (AMZN.O) and Microsoft Corp (MSFT.O), were the biggest boosts to the S&P 500. Earlier this week, heavyweight high-growth stocks declined sharply as Treasury yields rose.
Investors will soon turn their attention to third-quarter earnings reports that will begin arriving in earnest next week.
Shares of Levi Strauss & Company (LEVI.N) jumped more than 8% after the jeans maker beat third-quarter revenue and profit estimates.
Advancing issues declined to a 3.98-to-1 ratio on the NYSE; On the Nasdaq, a 3.52-to-1 ratio favored advances.
The S&P 500 posted 30 new 52-week highs and 3 new lows; The Nasdaq Composite posted 81 new highs and 59 new lows.